Microsoft was one of the companies that booked a charge because of the new U.S. tax law.

AP

Good morning. Microsoft Corp., Facebook Inc. and Qualcomm Inc. reported billion-dollar tax charges alongside quarterly earnings on Wednesday as the impact of the U.S. tax overhaul percolates through corporate balance sheets. Finance teams have spent the weeks since the law's Dec. 22 enactment evaluating the effect of the new rules on their books, including the lower corporate tax rate as well as a mandatory one-time tax on unrepatriated foreign earnings.

Microsoft's $13.8 billion hit led the company to post a loss of $6.3 billion for the quarter. Excluding the impact of the tax law, Microsoft reported a profit of $7.5 billion. The company keeps overseas the vast majority of its cash, which rose to $142.8 billion in the quarter. In an interview, Chief Financial Officer Amy Hood declined to say when the company might bring home some of that money,reports the WSJ's Jay Greene.

Qualcomm took a $6 billion charge related to the new U.S. tax law, posting a loss of $5.95 billion, compared with a profit of $682 million in the same period a year earlier. Facebook reported a$3.19 billion tax charge, of which $2.27 billion stemmed from the congressional tax overhaul.

By contrast, AT&T Inc. bookeda $20 billion gainstemming from the tax law. The company said it also expects to keep an extra $3 billion in cash this year from the lower rate, a windfall it plans to spend on enhancing its network.

THE DAY AHEAD

Capital outflows from China drop sharply.Beijing can declare mission accomplished in its battle to keep money at home -- at least for now. A study to be released on Thursday by the Washington-based Institute of International Finance shows that net capital outflows from China reached $60 billion last year, less than one-tenth of 2016’s net outflows of $640 billion.

A Boeing 787 being built for Norwegian Air Shuttle at Boeing's assembly facility, in Everett, Wash., U.S., June 2017.

AP

Boeing boosts capital spending plans in wake of tax overhaul.Boeing Co. said gains from a big drop in its effective tax rate to 16% would be invested in product development, workforce training and factories as the world’s largest aerospace company works through a huge backlog of commercial jetliner orders and targets higher worldwide military spending.

PayPal profit up 59%.PayPal Holdings Inc. said fourth-quarter profit rose to $620 million, despite a $180 million tax expense stemming from the new U.S. tax law which raised its effective tax rate to 28.2%, from 16.8% in the same quarter of 2016. But, shares in the company fell more than 12% in aftermarket trading after eBay Inc. -- PayPal's former owner -- said Wednesdayit would replace PayPalas its primary payments processor.

Lenovo books loss on U.S. asset charges. Lenovo Group Ltd. took a $400 million charge following the U.S. tax overhaul, pushing it to a net loss in the third quarter and missing analyst expectations as its mobile unit continued to struggle.

Pandora to cut 5% of workforce.Pandora Media Inc. will lay off 5% of its workforce as the internet radio company tries to rein in costs while investing in advertising technology and efforts to woo back listeners.

SoFi lays off 5% of staff. Online lender Social Finance Inc. is laying off dozens of employees in its mortgage division, an area the company previously highlighted for its growth prospects, according to people familiar with the matter.

REGULATION

Chickens gather around a feeder in a Tyson Foods poultry house in Ark., U.S.

U.S. regulators subpoena Bitfinex, Tether. The U.S. Commodity Futures Trading Commission sent subpoenas to Bitfinex, one of the world’s largest cryptocurrency exchanges, and a connected digital-token issuer, Tether Ltd., as questions swirl about the backing of its tokens, according to people familiar with the matter. The CFTC is currently reviewing its process for approving new futures products, after the launch of bitcoin futures raised questions about whether its hands-off approach should be changed.

SEC drops second bribery probe of energy firm.Cobalt International Energy Inc., under scrutiny over potential bribery since 2011, said the U.S. Securities and Exchange Commission won’t take enforcement action against it following a probe of the firm started last year.

Fed holds rates steady.U.S. Federal Reserve Chairwoman Janet Yellen concluded her final policy meeting Wednesday by holding interest rates steady and leaving it to her successor to decide whether to lift them more quickly to prevent the economy from overheating.

Germany has to pay to borrow again.The German Finance Agency sold €3.20 billion ($3.97 billion) of new debt at an average yield of 0.08% on Wednesday, ending a streak of negative yields on the country’s five-year government bonds that began in September 2015.

CFO MOVES

Coca-Cola Bottling Co. Consolidated, a Charlotte, N.C. Coca-Cola bottler, appointed David M. Katz as executive vice president and chief financial officer, effective Jan. 26. Mr. Katz succeeds Clifford M. Deal, III, who will be retiring from the company. Prior to his appointment, Mr. Katz served in a number of roles at Coca-Cola Bottling, most recently as executive vice president, product supply and culture & stewardship since April 2017. Compensation details were not immediately available.

The Morning Ledger from CFO Journal cues up the most important news in corporate finance every weekday morning. Nina Trentmann contributed to today's Ledger. Send tips, suggestions and complaints to the editor: kimberly.johnson@wsj.com.